Jalisco has a beta of 15 when the market risk premium is 8

Assignment Help Finance Basics
Reference no: EM13486135

Jalisco,Inc. is estimating its cost of equity capital. Jalisco has a beta of 1.5 when the market risk premium is 8% and the risk free rate is 3.5%. What is Jalisco's cost of equity capital?

i) 8%,

ii) 15.5%,

iii)10.25%, or

iv) 8.75%

Reference no: EM13486135

Questions Cloud

Linen supply co paid a dividend of 325 on its common stock : linen supply co. paid a dividend of 3.25 on its common stock yesterday. the companys dividends are expected to grow at
Marick inc has an unfunded postretirement health care : marick inc has an unfunded postretirement health care benefit plan. life insurance and medical benefits are provided to
Raceway motors issued a 20 years 8percent semiannual bond : raceway motors issued a 20 years 8percent semiannual bond 3 years ago. the bond currently sells for 98.6percent of its
In what ways do fasb rules limit business practices and : explain the role of the fasb in monitoring and controlling business reporting and accounting practices in the modern
Jalisco has a beta of 15 when the market risk premium is 8 : jaliscoinc. is estimating its cost of equity capital. jalisco has a beta of 1.5 when the market risk premium is 8 and
You are thinking about buying a new car the sticker price : you are thinking about buying a new car. the sticker price is 22000 and you have 3000 to put towards the down payment.
Create an excel spreadsheet to compute budgeted factory : create an excel spreadsheet to compute budgeted factory overhead rates and apply factory overhead to production. use
Suppose the interest rate is 92 apr with monthly : suppose the interest rate is 9.2 apr with monthly compounding. what is the present value of an annuity that pays 85
The real risk-free rate is 4 inflation is expected to be 1 : the real risk-free rate is 4. inflation is expected to be 1 this year and 5 during the next 2 years. assume that the

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the estimated ocf for this project

The engineering department estimates you will need an initial net working capital investment of $580,000. You require a 18 percent return and face a marginal tax rate of 30 percent on this project.

  Select best option in insurance policy

You are the beneficiary of a life insurance policy. The insurance firm informs you that you have two options for receiving the insurance proceeds.

  How many nurses must be on duty each day

Assume the agency in the above example operates a total of 250 days a year. How many care hours must it provide per day? Assuming 8-hour shifts and using only registered nurses, how many nurses must be on duty each day?

  Calculate the npv of going directly to market

Calculate the NPV of going directly to market and the NPV of test marketing before going to market.

  What will be its optimal cash return point

The trading cost per sale or purchase of marketable securities to be $35.50 per transaction. What will be its optimal cash return point?

  What is the cost of taking on the new line of business

A new machine that will last four years would cost $50,000. What is the cost of taking on the new line of business? Round to the nearest dollar and assume a 9 percent cost of capital.

  Select any two of the fundamental theories listed below and

select any two of the fundamental theories listed below and begin to research the internet and online library to

  Calculate the price of a share

You are given the following data: Stockholders' equity $3.75 billion, price or earnings ratio 3.5, common shares outstanding fifty million, and market or book ratio 1.9.

  Create the milestones schedule and critical risks assessment

Create the Milestones Schedule and Critical Risks Assessment

  What would abc drilling total value be if it had no debt

A similar firm with no debt has a cost of equity of 12%. Under the MM extension with growth, what would ABC Drilling's total value be if it had no debt?

  Calculate ear for first national bank and first united bank

Calculate the EAR for First National Bank and First United Bank.

  How long were robinson cycles and cash conversion cycles

If sales in 2010 were $1.2 million, sales in 2011 were $1.3 million, and cost of goods sold was 70 percent of sales, how long were Robinson's cycles and cash conversion cycles in each of these three years? What caused them to change during this ti..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd